Galaxy S7 Sales Boost Samsung Earnings - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
Commentary
4/28/2016
01:06 PM
Eric Zeman
Eric Zeman
Commentary
50%
50%

Galaxy S7 Sales Boost Samsung Earnings

Samsung earned a bit more than it expected to during the first three months of the year, thanks to robust sales of the Galaxy S7 and S7 Edge smartphones.

Samsung Galaxy S7, S7 Edge: An Up-Close Look
Samsung Galaxy S7, S7 Edge: An Up-Close Look
(Click image for larger view and slideshow.)

On Thursday, Samsung reported a substantive increase in first-quarter profits, which are up 12% from last year. The company says its latest flagship smartphones, the Galaxy S7 and S7 Edge, helped it generate more revenue and stabilized its mobile division. The company is predicting strong handset shipments for the current quarter, too. That forecast suggests that Samsung has reversed slipping sales. 

Earlier this month, Samsung said it was expecting to record profits of about $5.7 billion. Instead, the company saw profits of $5.84 billion on revenue of $44.8 billion. Profits at its smartphone division climbed an impressive 42% from the year-ago period. Samsung's phone business hasn't seen profits in this range since 2014.

Moving forward, Samsung says it believes it will see growing sales for the Galaxy S phones alongside its entry-level Galaxy J series and mid-range Galaxy A series. The company estimates second-quarter shipments, including tablets and wearables, will hover around 90 million units.

(Image: Samsung)

(Image: Samsung)

Samsung hopes its predictions for continued good sales will ease investor fears. Several weeks ago, analysts suggested launching the S7 and S7 Edge in March, rather than in April, artificially inflated Samsung's first-quarter numbers and stole sales from the second quarter.

The S7 and S7 Edge are excellent devices. Samsung focused on adding features demanded by consumers, such as support for memory cards, a waterproof chassis, and a better camera. The two handsets are among the best available running Google's Android operating system.

Are you prepared for a new world of enterprise mobility? Attend the Wireless & Mobility Track at Interop Las Vegas, May 2-6. Register now!

Samsung shipped about 81.9 million phones during the first quarter, estimates IDC, giving it 24.5% of the global market. Samsung doesn't reveal actual sales figures. The S7 and S7 Edge have positioned Samsung far ahead of Apple, which pushed 51.2 million iPhones during the first quarter, a significant drop for the company.

Huawei is a distant third in the overall market. It saw shipments of 27.5 million devices during the first quarter. Somewhat surprisingly, Chinese firms Oppo and Vivo have pushed incumbents including LG and Lenovo out of the top five phone makers.

The S7 enjoyed several weeks on the market with no direct, up-to-date competitors. Since the phone's launch, however, LG began shipping the G5 and HTC began shipping the 10. These Android flagships are excellent options for Android shoppers, and may take sales away from the S7 and S7 Edge during the second quarter.

Eric is a freelance writer for InformationWeek specializing in mobile technologies. View Full Bio
We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
CIOs Face Decisions on Remote Work for Post-Pandemic Future
Joao-Pierre S. Ruth, Senior Writer,  2/19/2021
Slideshows
11 Ways DevOps Is Evolving
Lisa Morgan, Freelance Writer,  2/18/2021
News
CRM Trends 2021: How the Pandemic Altered Customer Behavior Forever
Jessica Davis, Senior Editor, Enterprise Apps,  2/18/2021
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll